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Tuesday, June 9, 2015

Leading Rotherham companies are amongst the mid-market firms that are driving growth in the region, according to the Yorkshire Report 2015, published today by accountancy and business advisory firm BDO LLP.

The top 250 firms in Yorkshire have increased revenues by £6bn to £102bn, and now have cash in the bank in excess of £3.2bn – an almost £1bn leap from the previous reporting period. However, further analysis which splits the top 50 firms (£300m+ turnover) and the mid-market 200 reveals it is the region’s medium-sized businesses that are driving growth and prosperity for Yorkshire.

Mid-sized firms are rapidly outperforming their larger peers in all key performance indicators. Turnover, overseas sales and employee numbers are growing faster in the mid-market than they are among Yorkshire's biggest businesses.

Turnover has grown by 13.2% for mid-sized firms (compared to 5.2% for the largest 50 companies); employment levels are up 11.6% (compared to 2.8%) and overseas sales have rocketed by 19.3% (compared to just 3.6% in large firms).

Terry Jones, partner and head of BDO LLP in Yorkshire, said: "Yorkshire firms have recovered well and are growing strongly, with cash in the bank, employment and overseas sales all on the up. But what's really clear is how important the mid-market is to our regional economy and future prosperity.

"Medium-sized businesses – our newly named "Brittelstand" - are the real drivers of growth in our region. With continued investment, ambitious growth strategies and the right government support, they will fast become the big businesses of tomorrow."

The backbone of Yorkshire's economy remains strong, with manufacturers accounting for 72 of the top 250 companies. The region's manufacturers saw profits before tax jump 38% to more than £1bn in the reporting period. The sector also accounts for more than half (£4.9bn) of the total overseas sales made by the 250 companies.

The retail sector continues to be the largest contributor to revenues (£44.3bn), however profits have plummeted following another tough year for food retailers Asda and Morrisons which account for more than 90% of the sector's revenues. Manufacturing was the second biggest contributor with revenues at £12.4bn, followed by the food and drink sector which recorded a 22% jump to £11.3bn.